Ofgem tells energy firms to take urgent action to fix direct debit problems

[AE-NMidlands]

https://www.theguardian.com/business/20 ... t-problems

The energy regulator for Great Britain has told a string of suppliers to take urgent action after finding “severe weaknesses” in handling customers’ direct debits.

Ofgem has scrutinised how energy companies handle direct debits, finding evidence that customers have been treated poorly.
It named a group of suppliers where it had identified “moderate to severe weaknesses” – Ecotricity, Good Energy, Green Energy UK, TruEnergy, Utilita Energy and UK Energy Incubator Hub, which has ceased to trade.
The regulator said it had found failings ranging from “inadequately documented or embedded processes, weak governance and controls, to an overall lack of a structured approach to setting customer direct debits”.

Ofgem is concerned that these issues could lead to direct debits being set incorrectly, or not being reviewed regularly, which can cause the buildup of either large credit balances or debt, depending on whether the customer is under- or overpaying.
/snip/
It also named a group of suppliers where it had found “minor weaknesses” including a “lack of documented policies or guidance for staff”. This group consisted of Bulb, which is now in a taxpayer-funded administration, E.ON, Octopus Energy, Outfox the Market, Ovo, Shell and Utility Warehouse.

British Gas, EDF, ScottishPower and SO Energy had “no significant issues” in handling customer direct debits, the watchdog found.

etc.
Sorry to see Octopus named, but at least it's only "minor weaknesses!" I don't think I have had any issues with them at all.
A

[nowty]

Octopus don't seem to mind my DD being only £1 per month.

[Oldgreybeard]

This DD thing REALLY winds me up, big time. I completely lost it with our electricity supplier in April, when they upped my DD by around 300%, despite me being in credit by a fair amount, with an increasing credit balance all through the winter that showed I was massively over-paying already. The phone conversation with them got so heated that my wife came in and told me to calm down before I had a heart attack. The buggers refused point blank to adjust the DD down, even though I had evidence to prove that our usage was far lower than their estimates.

It didn't help that the half-wit I was talking with on their customer support line clearly didn't have a clue about energy. I ended up trying (and failing) to explain that, as we'd had battery storage running for around a year or so, the historical data from earlier years they had was void. In the end I threatened to cancel the DD unless they left it unchanged. That worked, sort of, but I then got a letter from them telling me that I was at risk of under-paying, when I was around £600 in credit and with a credit balance that was building by around £80/month. For the past few months we've used around £30, with about £12 of that being the massively increased standing charge. That also REALLY winds me up, as the doubling of the standing charge is only going to bail out the chancers that have gone bust. It really bugs me that we have to pay the pensions or whatever of these chancers that took a risk to make a quick buck.

[AE-NMidlands]

Time for a formal complaint to the Chief Exec, copied to the regulator.
I'm sure they have to agree the amount with you.
A

[spread-tee]

Agreed OGB, it is a wind up, we had a similar experience a while back so now I switch off the DD via internet banking and let the service providers chase me. I am always amazed at how hard it is to speak to someone on the blower until they suss the DD has been turned off, they get on the phone pretty smart then............

Desp

[nowty]

I've always wondered what the official OFGEM position is on Direct Debits, I have just found this fact sheet.
https://www.ofgem.gov.uk/sites/default/ ... b_2019.pdf

[John_S]

Do you have a smart meter. Just ask to pay the exact monthly amount in full each month.
They cannot refuse.

[Oldgreybeard]

I've always wondered what the official OFGEM position is on Direct Debits, I have just found this fact sheet.
https://www.ofgem.gov.uk/sites/default/ ... b_2019.pdf

That reminds me of the OFGEM complaints procedure, seems OK when you first look at it but is a bit thin on hard detail. I'm already part way through the OFGEM complaints system as our FIT hasn't been paid for well over a year, and our FIT provider seems incapable of communicating with me or OFGEM. The excuses all seem to relate to Covid, but frankly I think this is just an excuse for poor service.

Do you have a smart meter. Just ask to pay the exact monthly amount in full each month.
They cannot refuse.

Wish we did have a smart meter. We had one for a few months a year or so ago, but our previous supplier couldn't get it to work, although to give them credit they did come out several times to try and sort it. Eventually they had to take it out and fit the same sort of economy 7 meter we used to have. It's really restrictive not having a smart meter now, as there are very few deals available for those stuck with dumb meters.

[openspaceman]

It was painless getting a £200 refund from Eon so I shall repeat the process next month when it gets that high again. They will not allow reduction of the direct debit. It's from a current account which doesn't cost nor pay interest so not a big deal.

Yes this increase in standing charge bugs me after trying to minimise the electricity bit otherwise successfully.

[Thebeeman]

I'm with EDF for both supply and FIT. The FIT they pay into my bank within 3-4 days of my meter reading. For the supply they increased my DD by about the correct amount but then refunded £56 that I was in credit without me asking. I'm inclined to stick with them until the market stabilises a bit if ever. My only gripe is that we have a Gen 1 smart meter and they won't fit a new one with the ability to talk through the web, our dwelling is 100 mts from from the meter and we just get a radio signal on the existing one.